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Opec unites behind higher
prices
Paul Gottfried
Financial
Times
Sunday November 18, 2007
Opec leaders meeting at the weekend summit in Saudi Arabia have
differed sharply over the group strategy and purpose, but have
united in defence of high oil prices.
Hugo Chavez, the left-wing president of Venezuela, opened the
summit welcoming oil prices at close to $100 a barrel, describing
them as "fair". He called for the group to be "an
Opec for geo-politics, an Opec for revolution," adding "Opec
was born as a geo-political actor, not as an economic or technocratic
bloc."
He also reiterated his warning that oil could hit $200 a barrel
if the US attacked Iran. King Abdullah of Saudi Arabia, the summit's
host, gave a very different view of Opec's objectives, saying
it was intended to protect both its members' interests and the
world economy, and praising the group for acting in a "moderate
and wise manner."
(Article continues below)
However, he also appeared to justify oil prices at their current
levels, saying that taking into account inflation, prices were
still "not yet at the level of the 1980s."
The summit in Riyadh, Saudi Arabia, only the third in the group's
47-year history, will not take any decisions on short-term production
levels, which will be assessed at the next ministerial meeting
in Abu Dhabi on December 5. It is instead intended to set Opec's
long-term strategy, focusing on securing a central role for oil
in the world economy. The draft of the declaration to be issued
on Sunday emphasizes priorities such as investment in production
capacity and the need for consuming countries to provide assurances
of future demand. The summit is due to resume at 1500 local (1200
gmt).
Abdalla el-Badri, Opec's secretary-general, called in his speech
to the summit on Saturday for "transparency and predictability
in consuming countries' energy policies," to give oil producers
the confidence to invest in new capacity.
Full
article here.
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